31 January 2024
Scirocco
Energy plc
("Scirocco" or "the Company")
Completion of EAG Divestment
Scirocco Energy plc (AIM: SCIR), the
AIM investing company targeting attractive assets within the
European sustainable energy and circular economy markets, today
announces an update on the divestment of its interest in Energy
Acquisitions Group Limited ("EAG") (the "Transaction").
Following receipt of the waiver from
AIB, Scirocco is pleased to announce the successful completion of
the sale of its interest and investment in EAG, in which it held
50% interest, for a gross enterprise value of £2.6 million before
adjustments, plus a contingent consideration of up to a further
£150,000, to private equity firm OrbeNovo Capital. This
transaction, initially disclosed on 21 December 2023, and detailed
in the circular published on 22 December 2023, received approval
from shareholders at a General Meeting convened on 10 January
2024.
Highlights
·
The Transaction will result in a firm net
consideration of c. £702k payable to Scirocco, which is expected to
be received today, will be retained by the Company.
·
Contingent consideration of up to £150k, payable
in tranches, if and when EAG completes the acquisition of certain
target anaerobic digestion sites which have been developed in EAG's
deal pipeline within the last twelve months.
The Board continues its review of a
range of potential alternative options available to it by which it
is able to deliver value to Shareholders, which may include the
distribution of available cash, further investments in line with
its investing policy and/or the deployment of the proceeds in
pursuit of a reverse takeover transaction. Linked to this is the
receipt of the first contingent payment of $3 million pursuant to
the disposal of the Company's interest in the Ruvuma asset, which
is still expected to be received later in Q1 2024.
Commenting on the update, Alastair Ferguson, Chairman of
Scirocco, said:
"I am pleased to announce the
completion of the divestment of our interests in EAG. The Board is
presently progressing its review of a range of potential options
available to deliver value to shareholders and these funds will
provide additional optionality to underpin that review process. The
Company is in a strong position in terms of having a clean
structure, zero debt and a strong and growing cash position. We
look forward to providing further updates on that review process as
appropriate."
For further
information:
Scirocco Energy plc
Tom Reynolds, CEO
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+44 (0)20 7466 5000
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Strand Hanson Limited, Nominated Adviser
Ritchie Balmer / James Spinney /
Robert Collins
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+44 (0) 20 7409 3494
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WH
Ireland Limited, Broker
Harry Ansell / Katy
Mitchell
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+44 (0) 207 220 1666
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Buchanan, Financial PR
Ben Romney / Barry Archer / George
Pope
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+44 (0)20 7466 5000
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